M21 - Business EconomicsReturn

The financial decision-making processes in family-owned enterprises have become a prominent subject due to the notable influence these businesses exert on national economies. This article seeks to identify and compare the standard budgeting practices of family and non-family firms within the Czech Republic, addressing a considerable gap in research and empirical confirmation concerning family businesses. While no significant differences were found in most financial management tools, the study identified differences in budgeting instruments, particularly in preparing income statements and the frequency of budget monitoring and control. Family businesses tend to involve owners in budget preparation, whereas non-family firms delegate this task to financial departments. Despite the lack of statistical significance in many areas, the study suggests that family businesses may face unique challenges in financial management due to factors like family dynamics and succession planning. Traditional budgeting methods remain dominant, with minimal adoption of modern approaches such as activity-based or flexible budgeting. The study employs statistical analysis to identify potential familial impacts on different budgeting facets to accomplish this objective. The empirical research has been conducted through a questionnaire survey. Overall, the study provides valuable insights into the budgeting principles employed by Czech family businesses, encompassing the influence of family involvement, traditional budgeting criticism, ownership structure, financial decision-making, and business stability.  

Entrepreneurship has a very complex culture content where people are given demanding tasks and responsibilities. For many individuals, this culture is not easy to adopt. There are various forms of support has been created for those interested. One of them is the entrepreneurship education offered to students at the School of Business Administration in Karviná. Within the process of the entrepreneurship course, students gaining professional knowledge followed by personality type through a standardized psychological test. This innovative step would help them how to use this knowledge. The aim of this paper is to introduce the typology of students in the entrepreneurship course within the comparison of the personality typology from a population of real entrepreneurs. In fact, the results show that the students' typology is very different from that of real entrepreneurs. Those results can have an impact on the decision to enter the business and subsequently on the business performance as well or to innovate business courses.

The article is focused on the size and profitability of companies in the Czech Republic in relation to working capital management. The aim of the article is to find out whether and to what extent working capital and working capital management influence the size of companies and the profitability of companies operating in the manufacturing industry and the wholesale and retail sector. The generalized method of moments (GMM method) will be used to determine the goal of the article. Annual data for the period 2008 to 2021 of companies operating according to the CZ-NACE classification in the manufacturing industry and the retail and wholesale trade sectors will be included in the research. Using the GMM method, a statistically significant relationship between working capital management on the one hand and the profitability and size of companies on the other hand was demonstrated. Cash conversion cycle, current assets, short-term liabilities and working capital have an impact on the size and profitability of businesses in the Czech Republic.

Thanks to the Covid-19 epidemic, the last two years have been full of changes for entrepreneurs. Managing and measuring business performance is important for businesses because it allows them to identify the potential of the business and determine its strength in the market environment, as demonstrated by the current situation in the Covid-19 pandemic. The purpose of this article is to present the results of the response of entrepreneurs to the situation in Covid-19 based on primary research in 295 companies in the Czech Republic in relationship to strategic goals and business environment evaluation. The results showed that these entrepreneurs wanted to change their main objectives to long term sustainability at first. More than 50.5% of respondents do not plan to close their business activities in the near future.

The application of the super-deduction of a tax as a support R&D in tax entities is primarily conditional on an assessment of whether the activity is in fact research and development. The aim of the paper is to analyse the structure of entities applying the super-calculation of research and development costs in the Slovak Republic in the period from 2015 to 2018 as well after the increase in the super-calculation rates in 2019. In the paper we mostly use quantitative statistical analysis. The rate of Slovak entities application of super-deduction in the individual years examined is low, despite a gradual increase in rates up to 150% (plus 100% year-on-year growth) in 2019. The assumption that the number of companies applying super-deduction would increase even with the increasing number of employees of the company has not been confirmed. During the period considered, companies with 10 to 50 employees applied 344 times, which was the cumulative maximum for the entire period considered. This category also prevailed in the individual monitored years. The sectoral structure of the companies is diverse, with the information technology sector predominating, followed by the engineering and electrical engineering sectors.

In this article simple and understandable framework for the creation of the crisis management system is presented. When creating framework two premises were respected - crisis management is seen as a system and as a process. Mind map in which substantial causal relation were captured is default for framework creating. Framework is prepared to engage a sequence of individual steps, the reason for their implementation, dates and responsible person/team. Presented framework is a tool for the practice of managers, especially those of small organisations. It has been successfully applied in several small organisations.

As a result of constant changes in a business environment, companies are confronted with a significant number of risks. Such development is supposed to bring higher risk management requirements. Demands on systematic risk management framework creation are also newly included in revised ISO 9001:2016 standard. Under these conditions, companies should pay sufficient attention to risk management methods. The aim of the paper is to focus on risk management methods and their possible evaluation. Particular views on existing evaluation or classification of methods available from resources focused on the issue of the risk management methods are described and possibilities for further categorization of methods are outlined. In the paper an attempt to examine approaches to risk management and methods in a real business environment through a questioning. Due to a smaller number of respondents the questioning is used as a complementary to the overview of methods and approaches and to provide a starting point for a further research.

The financial performance and financial health of companies is given through the ability to generate added value. For the resulting effect of creating added value, maximum activity is required. Otherwise, companies have significant payment difficulties that can be resolved by a radical change in its activities or structure. The aim of this paper is to indicate potential threat of the financial distress of selected public limited companies in Poland. The financial health of companies is analysed by Taffler's bankruptcy model. The construction of the predictive models and the bankruptcy models are based on actual data from companies which were threatened by bankruptcy in previous years. The Taffler's bankruptcy model is applied on the annual financial results of public limited companies in Poland from 2006 to 2015. The results indicated that 12 % of public limited companies in Poland had financial problems during observed period.

The paper describes the current issue of the quality management in the corporate sector. The focus is placed on medium and large companies, because these companies lead to the creation of the post of the quality managers. The quality should be incorporated in the corporate strategy. These companies should successfully manage the quality of their products, services, business processes and other aspects of the quality. It requires the monitoring and the analyzing the cost of the quality. Attention should be paid to the quality because of its direct impact on the customer loyalty. The quality control can be based on 8 quality management principles whose respect greatly contributes to the increasing the efficiency of company operations. The paper contains results of the research in 60 mainly large companies. This research revealed that the most prominent problem of the quality control is the fluctuacion of employee and insufficient the record keeping of the quality cost.

Family business is characterized by a certain group of properties that distinguish it from non-family business. The aim of this paper is to identify dependency between selected characteristics and the turnover of respondents. These characteristics result from the survey, which was conducted in the preparatory phase of the project on the family business from Liberec region. Another aim of this paper is to grow awareness of family business, because this topic is in the Czech Republic still often overlooked and inadequately discussed. Most theoretical and empirical studies are focused on public corporations or small and medium sized enterprises (SMEs) and only few studies are focused only on family business. Importance of family businesses for the national economy is undeniable and based on the research can be stated, that family business as a tool for the future sees 83% of respondents.

Much has been recently written about "Generation Y". Banking institution, employers, as well as sellers of various kinds of products and services devoted to this social cohort. This kind of generational phenomenon has revolutionized interpersonal relations in all areas. However, the last studies show that the revolution is not as significant as it was expected. Meanwhile "Generation Z" grown up and became adulthood. These are young people born between the years 1995-2020, wherein the various studies work relatively freely with this range. And again there are different scenarios, how this cohort will affect the events in the society. One of the primary areas that will be undoubtedly influenced is the buying preferences. The research, which is the subject of the presented article, was focused on finding, what are the buying habits of consumers of selected group and what is their opinion about the quality of Czech products. At the same time was discovered their interest in the economic situation in the Czech Republic and in the world, and finally what is their opinion on protectionism and to this related preferences of purchase of Czech products before foreign ones. All of this was performed in comparison with the previous generation, the "Generation Y". For confirmation or rejection of the proposed hypotheses was used Chi-square test of independence in the pivot table.

The aim of this article is to present skills and abilities of a crisis manager, which managers of small businesses identified, and the evaluation of their significance for the performance of this function. A similar model or summary of these skills and abilities has not been identified in both Czech and foreign literature. For its creation it was necessary to carry out survey. A pilot survey was conducted on a sample of 350 respondents. An overview of abilities and skills was generated based on brainwriting. A mind map depicts generated proposals into two levels. To determine the significance of the identified skills the Saaty's method was used. Skills and abilities are concentrated in three groups - managerial, interpersonal and technical. Also different attributes of individual skills according to the level of their development were established. The model of required skills and abilities was created in cooperation with respondents and experts from crisis management. It can be a useful tool for businesses because this methodological aid is not yet included the in the database of competences.

The article deals with the problem of business processes modelling. It presents the basic theoretical concepts and proposals how to use various methods of business processes modelling for various levels and attributes of these processes through the created methodical cube. The methodical cube is the methodology of the process model (or map) creation as well as the innovative tool in process management. The objective of this article is to create the basis for business processes optimization and for improving their performance through "the three aspects methodology" required for the business processes modelling and design. The authors mention the project approach to process modelling. They use an analysis of problems (so-called "tree of problems") and analysis of goals (so-called "tree of goals) as project tools, which should be applied before process modelling. These tools help the process manager to understand potential problems and find the goals for making a good process map or model.

Nowadays the issue of companies' bankruptcy is very actual topic not only in Slovakia but also abroad. Financial analysts are looking into the possibility to predict of companies crisis by using prediction methods of financial analysis ex-ante. The aim of the article is verification and comparison of results of the selected prediction methods in a group of Slovak companies in year 2009, 2010 and 2011. Group of companies contains six Slovak companies. In the introduction of the article we define the theoretical aspects of prediction methods. Comparison of results of prediction methods and their verification are a major part of the article.

The aim of this article is to identify the business value drivers on both theoretical level and in the conditions of a specific sector within Czech economy. The aim is fulfilled by the definition of performance measurement system of a business and its further application. This includes the definition of the performance, performance metrics, its determinants and also the linkages in between them. The theoretical part results in the formulation of the generic multifactor model for explanation the value drivers. The theoretical part is followed by the quantification of chosen value drivers within the Czech brewery sector. The results offer the information about the importance of particular value drivers among the businesses in the Czech brewery sector, including both financial and non-financial perspective.

Nowadays, it is necessary to consider the impact of production on the environment and search for tools that can help to evaluate the negative impacts throughout the product lifecycle. Car wrecks in terms of material composition are very complex as they contain dozens of different materials. Composition of the car wreck, however, depends on the type of vehicle, its age and manufacturer, respectively on country of origin. The amount of waste depends primarily on product design and hence the recyclability of materials used. In the context of environmental protection and environmental requirements for products and services, this article focuses on the Life Cycle Assessment (LCA). The aim of this article is to provide a study of recycling discarded vehicles and modeling of this process from the perspective of LCA.

Financial statements are a necessary base of measurement of financial position and performance of a company, and the clearly proved fact is that the view on financial position and performance is influenced by applied accounting and reporting methods. Objective of the submitted paper is to quantify differences in financial position and performance of companies at application of IFRS. The authors are also aimed at the synthesis of accounting differences between IFRS and the Czech accounting law. In order to fulfil objective of the paper the authors based their work especially on the primary research. They have used the statistic sample of companies where they transformer financial statements of these companies in accordance with the IFRS. Then, the methods of financial analysis have been applied in order to quantify the differences in the financial position and performance at application of the IFRS.

The tolling method can be considered as an effective tool to deal with critical situations of a company in the area of cash flow. Tolling can be characterized as a non-traditional tool of working capital financing that can be used in a project dealing with a critical situation of the company, primarily in order to finance production. Financing by means of the tolling method in the Czech Republic is primarily carried out on the basis of a private investor in small or medium-sized enterprises whose business activities are in the areas of civil engineering and light engineering. The article shows the potential utilization of tolling in construction industry and it points to the risks associated with inappropriate or poorly prepared application of the tolling method.

In this article the current situation of the utilisation of costing in hospitals in the Czech Republic is dealt. The theoretical basis is described in the first section of the article which are followed by additional research results. In the research, the emphasis was on the composition of costs in hospitals, as well as the range of calculations and methods of calculation. In conclusion, the research results are evaluated and made recommendations. The research was performed as a part of the project of the Internal Grant Agency at the Tomas Bata University in Zlín on the subject theme" Project of Analysing of Economic-Managerial Methods and Tools Utilised in the Hospitals in the Czech Republic" (IGA/FaME/2012004).

The article presents the analysis of the shopping behaviour of customers on "business to business" markets. The aim of this article is to describe the influence of shopping behaviour of organisations on setting the price of assets. The article compares two surveys carried out in the period of three years (from 2009 to 2011). Another aim of this article is to provide criteria that influence purchasing behaviour of customers which, thus affect the pricing of assets. The research showed that for assessing the value of property, the most important aspects are in operational reliability and operating costs. Valuation of assets in Czech financial accounting is based on the principle of a cost history. For the monetary valuation of assets, what is most important is the original cost of that asset. An organisation sees a problem with assessing cost, when its accounting value is minimal. This property is functional and it is necessary to reevaluate those assets in actual value for the purpose of managerial accounting. Expression of fair value of assets affects shopping behaviour of customers when they are buying assets and making decisions according to their own property criteria. The amount of value given to an asset is determined by how it meets their need, respectively, their criteria.

This paper is focused on cost management in terms of service units with dominating overheads. It contents aspects of both classical budgeting and cost analysis methods and cost management based on Activity- Based Costing methods. Its aim is to give a practical instruction how to manage overheads in service units.

The paper called "The Impact of environmental performance of enterprises on economic performance" is focused mainly on the detailed description of the environmental performance of the company and its subsequent correlation with economic performance. The data for the preparation of this article was obtained from the specific research. The method of data collection was the survey research elaborated during the specific research No. FP - J-10-2 at the Faculty of Business, BUT "Integrating environmental, economic and social business performance: An empirical analysis of Czech small and medium sized enterprises (SMEs)." The article contains valuable information about environmental performance and its links to economic performance.

This article aims to explore the theoretical knowledge of customer relationship management (CRM) and its operating principle, so it allows finding issues that need to be addressed in the following primary research. That is why this article examines the development of CRM definitions, from their very beginning in the 90's of the 20th century to the present. On this development, the authors describe the change in the approach to CRM. Furthermore, the article describes the application architecture of CRM, i.e. analytical, operational and collaborative CRM, and provides an example of their practical operation. Authors also mention advantages and disadvantages that are coupled with CRM. The last part of this article is devoted to reflection on the situation of small and medium enterprises, whether they even have the opportunity to implement CRM. In conclusion the authors summarize the key points arising from the theory, which should be included in a questionnaire.

One of the significant consequences of the globalization processes is the sharpening of the competitive environment and the sharpening of the subsequent pressure on the business efficiency. Beside the traditional indicators, in the last years the accent is putted on the modern firm performance indicators based on the theory of the shareholder value. The palette of the firm financial performance indicators is therefore relatively broad, what is the reason why the financial analytics stay in front of the problem to choose the set of indicators which would reflect the firm financial performance most precise.
Some of the indicators are in the significant correlation (for instance return indexes), but between another non significant or no correlation exists (for instance return on equity and solvency). In the case of the strong significant correlation it is sufficient to manage only one indicator of that category - that one which is in none or in the statistical non significant correlation with the indicators out of that category.
The main goal of the submitted paper is to compile the set of the key indicators of the firm financial performance what would reflect the financial performance reliable and would rectify the effort of financial analytics to increase it. The starting point to fulfil the goal of this paper is the identification of those financial indicators between none or the statistical insignificant correlation exists.

The article is to characterize and determine the concept of globalization while considering the differences in the theories of global and intercultural marketing. It describes the advantages and disadvantages of globalization in relation to the company, possibilities of application of standardization or adaptation. The fundamental part is to outline the intercultural approach to global products for middle and small sized companies. At the end of the article authors propose a case study describing the aforementioned theory on a general example.